United States Eighth Circuit

In a case arising out of the bankruptcy case of a former owner of an ethanol plant in South Dakota, which appellee purchased from the bankruptcy estate, bankruptcy court's grant of bank's motion for a prepayment penalty is reversed where: 1) bank failed to establish that South Dakota courts would decline to construe an ambiguity in a First Note against it; and 2) doing so, the note does not provide for the imposition of a prepayment penalty under any set of facts.

Appellate Information

• Decided 08/14/2008
• Published 08/14/2008

Judges

• SHEPHERD, Circuit Judge., Before RILEY, GRUENDER, and SHEPHERD, Circuit Judges.

Court

• United States Eighth Circuit

Counsel

• For Appellees:
  
• Sheila S. Woodward, argued, Yankton, SD (Michael F. Marlow, Yankton, SD, and Scott M. Perrenoud, Sioux Falls, SD, on the brief), for appellant/cross-appellee., Jerry L. Strasheim, argued, Omaha, NE, for appellee/cross-appellant.